Offer, acceptance, or solicitation to influence operations of employee benefit plan
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever being—
(1) an administrator, officer, trustee, custodian, counsel, agent, or employee of any employee welfare benefit plan or employee pension benefit plan; or
(2) an officer, counsel, agent, or employee of an employer or an employer any of whose employees are covered by such plan; or
(3) an officer, counsel, agent, or employee of an employee organization any of whose members are covered by such plan; or
(4) a person who, or an officer, counsel, agent, or employee of an organization which, provides benefit plan services to such plan
receives or agrees to receive or solicits any fee, kickback, commission, gift, loan, money, or because of or with intent to be influenced with respect to, any of the actions, decisions, or other duties relating to any question or matter concerning such plan or any person who directly or indirectly gives or offers, or promises to give or offer, any fee, kickback, commission, gift, loan, money, or prohibited by this section, shall be or imprisoned not more than three years, or both: Provided, That this section shall not prohibit the payment to or acceptance by any person of bona fide salary, compensation, or other payments made for goods or facilities actually furnished or for services actually performed in the regular course of his duties as such person, administrator, officer, trustee, custodian, counsel, agent, or employee of such plan, employer, employee organization, or organization providing benefit plan services to such plan.
As used in this section, the term (a) "any employee welfare benefit plan" or "employee pension benefit plan" means any employee welfare benefit plan or employee pension benefit plan, respectively, subject to any provision of title I of the Employee Retirement Income Security Act of 1974, and (b) "employee organization" and "administrator" as defined respectively in sections 3(4) and (3)(16) of the Employee Retirement Income Security Act of 1974.
History: (Added Pub. L. 87–420, §17(e), Mar. 20, 1962, 76 Stat. 42 (PDF, 1.8 MB); amended Pub. L. 91–452, title II, §225, Oct. 15, 1970, 84 Stat. 930 (PDF, 7.6 MB); Pub. L. 93–406, title I, §112(a)(2)(C), formerly §111(a)(2)(C), Sept. 2, 1974, 88 Stat. 852 (PDF, 37 MB), renumbered §112(a)(2)(C), Pub. L. 117–328, div. T, title III, §320(a)(1), Dec. 29, 2022, 136 Stat. 5354; Pub. L. 103–322, title XXXIII, §330016(1)(L), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB).)
Simplified explanation
It is a federal crime for people who run or work for an employee benefit or pension plan, or for the employers, unions, or service providers connected to it, to ask for or take kickbacks, gifts, loans, or money in exchange for being influenced on plan matters. It is also a crime to give, offer, or promise such payments.